NEW YORK (TheStreet) -- Shares of Twitter (TWTR - Get Report) are plunging 12.30% to $16.18 on heavy trading volume late Wednesday morning after reporting 2016 second-quarter revenue below analysts' estimates and issuing a downbeat forecast for current quarter revenue.
The social network hasn't figured out what its return on investment is, TheStreet's Jim Cramer noted on CNBC's "Squawk on the Street" this morning.
"Twitter's problem is they haven't figured out how to monetize it," Cramer added in the above video. "I've got ways to do it. They're not doing it."
He believes that the company should shift to conducting transactions and away from its current business model.
Salesforce.com (CRM) should buy Twitter and integrate the company with an exact target product that would allow it to communicate directly with e-commerce clients, Cramer contended.
"They have to get out of this business," he said. "Go to transactions. This is a home run business."
That business would be worth $4 billion to $5 billion, Cramer contended.
(Twitter is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings with a free trial.)
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Twitter's weaknesses include a generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: TWTR
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.